Enhanced stock liquidity increases a firm’s propensity to hold cash. This is surprising given the view that improved reduces financial constraints. We propose firms have repurchase motive for holding Higher strengthens this incentive. Consistent with this, more liquid increase cash holdings relatively when restrictions repurchases are eased. The effect of on not influenced by access credit mark...

Using data from 41 countries, we provide novel empirical evidence that firms’ cash holdings are positively associated with their climate change exposure. This is robust to different model specifications and survives a battery of tests ease concerns related spurious correlation omitted variable bias. the release Stern Review as an exogenous shock awareness, show this association becomes signific...

Determinants of a firm’s cash holdings have been popular topic research in finance, especially after the rapid surge for U.S. firms since 1980s. The wide array has focused primarily on firm-specific factors to explain cross-sectional variations but found insufficient explanatory power holdings. We incorporate variables macroeconomic conditions and uncertainty with variables. Using 19,223 213,66...